Introduction to Business Intelligent Systems

Transcription

1 Introduction to Business Intelligent Systems Week 1 Dr. Jocelyn San Pedro School of Information Management & Systems Monash University IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1, 2004 Staff- Dr. Jocelyn San Pedro! T1.28 Level 1, Building T, Caulfield Campus! Jocelyn.sanpedro@sims.monash.edu.au! correspondence:! Subject: IMS3001! enquiries anytime, but expect replies by Thursday PM! Consultation Hours: 2-3 PM Tu,Th,Fri (by appointment) IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1,

2 The Unit! 2-Hour lecture per week! 2-Hour tutorial per week! Tutorials begin in Week 2 (i.e. next week)! Please make sure you are assigned to a tutorial in Allocate+! no student will be admitted to a tutorial unless they are on the class list. IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1, Synopsis! evolution and current state of the art of the theory and practice of business intelligence systems;! role of these business intelligence systems in providing intelligence information to business decision makers! development process and some key techniques that support it IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1,

3 Aim! provide students with introductory knowledge of concepts, development and use of business intelligence systems IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1, Objectives At the completion of this unit the students will:! have knowledge of:! the scope and application of business intelligence systems! the role of business intelligence systems in supporting business decision making! the major approaches to the development of business intelligent systems! evolution of business intelligence systems IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1,

4 Objectives! have an understanding of:! the process of business intelligence systems development! current state of the art of the theory and practice of business intelligence systems! have the skills to:! organise, analyse and interpret data for the purpose of supporting business decision making! understand managerial problem solving activity as well as problem finding activity for supporting business decision making IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1, Objectives have developed attitudes which enable them to:! identify and evaluate business intelligence opportunities! plan for business intelligence solution and implementation! work closely with business intelligence team IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1,

5 Assessment Class Participation Value 10%! in tutorials Assignment Value 30%! due Week 9, during tutorial Exam, Value 60% Overall Assessment 100% IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1, Lecture 1 - Outline! What is Business Intelligence (BI)?! What is Business Intelligence System (BIS)?! What is the role of BIS in supporting business decision making?! How did BIS evolve? IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1,

6 Learning Objectives! Define business intelligence (BI) and business intelligence systems (BIS)! Explain the role of BIS in supporting business decision making;! Identify the different BIS that were introduced in the past and explain how such systems supported business decision making IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1, What is Business Intelligence? IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1,

7 What is Business Intelligence? According to vendors:! a segment of information technology that comprises software systems that enable finding, storing, organising and supplying data; when incorporated into an information system, it enables company to utilise real-time analysis of information Information Technology Toolbox IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1, What is Business Intelligence?! software that enables business users to see and use large amounts of complex data (e.g. multidimensional analysis, query tools, data mining tools) SDG Computing IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1,

8 What is Business Intelligence?! a category of applications and technologies for gathering, storing, analysing, reporting on and providing access to data to help enterprise users make better business decisions Cognos ( IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1, What is Business Intelligence?! markets business performance software, comprised of three subcategories that includes ad hoc query and analysis, reporting/olap, executive information systems and analytical applications Brio ( IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1,

9 What is Business Intelligence?! a set of concepts and methods to improve business decision making by using fact-based support systems (e.g. briefing books and executive information systems in the 1990s) Gartner Group IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1, What is Business Intelligence?! BI lets organisations access, analyse, and share information internally with employees and externally with customers, suppliers, and partners Business Objects IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1,

10 What is Business Intelligence?! BI helps corporations transform their operational data into actionable information; helps meet query reporting and advanced analytical needs MicroStrategy IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1, What is Business Intelligence?! BI is a performance management framework, an ongoing cycle by which companies set their goals, analyze their progress, gain insight, take action, measure their success, and start all over again! It helps decision makers make better decisions faster at both strategic and operating levels Vitt, Luckevich and Misner (2002) Microsoft Corporation IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1,

11 What is Business Intelligence? According to non-vendors:! BI is processed information of interest to management about the present and future environment in which business is operating Greene (1966) IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1, What is Business Intelligence?! Processed information vs. data! data - raw material that is composed of facts! intelligence information - information digested, analysed, and interpreted for the purpose of decision making! Management has crucial role in BI, determines! what will be in the domain of BI! what information if of interest or relevant to its decision! Company s environment! Present environment (mostly for tactical intelligence)! Future environment (mostly for strategic intelligence) Greene (1966) (cont) IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1,

12 What is Business Intelligence?! Operational Intelligence! Affects operational levels of organisation on daily, weekly, monthly basis! Tactical Intelligence! Affects a part of organisation for a limited time (i.e., coming year) into the future! Strategic Intelligence! Affects the entire organisation, or a major part of it for a long period of time (i.e., 2-5 years and beyond)! PURPOSE OF BI! Shift from reliance on short-term tactical decisions to better use of strategic intelligence in the decision-making process Greene (1966) (cont) IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1, What is Business Intelligence?! BI results from full appraisal of information, past actions, and options; once sown, it tends to propagate itself across an organisation Liautuad and Hammond (2000) IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1,

13 What is Business Intelligence?! BI refers to the ability to understand the interrelationships of presented facts whether they involve data, information and/or knowledge in such a way to guide action toward one or more desired goals Thierauf (2001) IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1, What is Business Intelligence?! Relationship of intelligence to various levels of summarisation! Data unstructured data! Information structured data useful for analysis! Knowledge - obtained from experts based on actual experience! Intelligence keen insight into understanding important relationships Thierauf (2001) IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1,

14 What is Business Intelligence?! BI centers on computerised methods and processes to improve strategic, tactical and operational decisions using data, information, and knowledge from multiple sources as well as applying experience and assumptions to develop an accurate understanding of the dynamic surrounding decision making Thierauf (2001) (cont) IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1, For this UNIT IMS3001! We shall adopt the definition of BI by non-vendors process, organisational function, product! Processing of information collecting, organising, analysing, gaining insight, interpreting, reporting data, taking action, measuring the benefits of such actions for the purpose of supporting decision making! Generally in the context of decision support IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1,

15 What is a Business Intelligence System? IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1, What is Business Intelligence System?! BIS is an information system that provides BI to business decision makers at different levels of organisation (operational, tactical, strategic levels)! BIS is an information system that turns selected data, information, and/or knowledge into desired intelligence for business gain (Thierauf, 2001) IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1,

16 What is the role of Business Intelligence System? IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1, Role of BIS! Provide decision makers with the ability to understand (i.e., the intelligence to gain insights into) the relationships of presented facts in the form of data, information, and knowledge in order to guide action toward a desired actionable goal (Thierauf, 2001) IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1,

17 Role of BIS! Provide decision makers with timely data, information and knowledge for problem solving, and problem finding! Past : Decision making as Problem Solving activity! Reactive approach use of appropriate management technologies to resolve current problems as they arise! Current: Business intelligence activity as problem solving, as well as problem finding! Proactive, preventive approach anticipating future company problems; looking for future opportunities IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1, How did Business Intelligence Systems evolve? IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1,

18 Evolution of BIS Computer-based Support Systems technologies! 1950s Transaction Processing Systems (TPS)! 1960s Management Information Systems (MIS)! 1970s Office Automation Systems Decision Support Systems (DSS)! 1980s DSS Expanded Commercial applications of Expert Systems Executive Information Systems (EIS)! 1990s Group Support Systems Neural Computing Integrated, hybrid computer systems Turban and Aronson (2001) IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1, Attributes of Computer-based Support Systems (Turban and Aronson, 2001) Dimension Applications TPS MIS DSS ES EIS Payroll, inventory, record keeping, production and sales information Production control, sales forecasting, monitoring Long-range strategic planning, complex integrated problem areas Diagnosis, strategic planning, internal control planning, maintenance strategies, narrow domain Support to top management, decision, environmental scanning IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1,

19 Attributes of Computer-based Support Systems (Turban and Aronson, 2001) Dimension TPS MIS DSS ES EIS Focus Data transactions Information Decisions, flexibility, user-friendliness Inferencing, transfer of expertise Tracking, control drill down IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1, Attributes of Computer-based Support Systems (Turban and Aronson, 2001) Dimension TPS MIS DSS ES EIS Decision Capabilities No decision, or simple decision models Structured routine problems using conventional operations research tools Semi-structured problems, integrated operations research models, bled of judgment and structured support capabilities The system makes complex decisions, unstructured; use of rules (heuristics) None IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1,

20 Attributes of Computer-based Support Systems (Turban and Aronson, 2001) Dimension TPS MIS DSS ES EIS Highest Organisation Level served Sub-managerial, low management Middle management Top management Top management and specialists Senior executives IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1, More BIS technologies! 1990s Data warehouses! Enable decision makers to pull BI from a large centralised repository! created to support the information requirements of an organisation s decision makers.! 1990s OLAP (On-Line Analytical Processing) systems! Enable decision makers to build and work with analytical models easily and view the output in multiple dimensions! 1990s Knowledge Management Systems (KMS)! Go beyond relationships found in information allowing decision makers to extract patterns, trends, correlations that underlie the interworkings of a company currently and over time IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1,

21 Summary! Vendors define BI according to what their products can do for the business enterprise! Limited in scope; mostly refers to data analysis, querying and reporting! Non-vendors refer to BI as a process, an organisational function, and a product! Process of converting data into actionable information from unstructured data to keen insight and understanding of interrelationships of presented facts! Organisational function strategic management function that affects the entire or major part of organisation! Product processed information for the purpose of supporting business decision making IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1, Summary! BIS is an information system that provides BI to business decision makers! BIS evolved from the concept of Computer-based Support Systems decision support technologies! New BIS terminologies data warehousing, OLAP, KMS IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1,

22 References! Vitt, E., Luckevich, M. and Misner, S. (2002) Business Intelligence, Microsoft Corporation.! Greene, R. (1966) Business Intelligence and espionage. Dow-Jones Irwin, Homewood, Ill.! Lintaud, B. (2000) e-business Intelligence: Turning Information into Knowledge into Profit, McGraw Hill, New York.! Thierauf, R. (2001) Effective business intelligence systems, Quorum Books.! Turban, E. and Aronson, J. (2001) Decision Support and Intelligent Systems, 6th Ed, Prentice Hall. IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1, Questions? School of Information Management and Systems, Monash University T1.28, T Block, Caulfield Campus IMS3001 BUSINESS INTELLIGENCE SYSTEMS SEM 1,